(NASDAQ:AMZN) is one of the pricier stocks in the retail space today, but one prognosticator believes it has plenty of room to go higher. On Thursday, UBS analyst Eric Sheridan released a report on the stock reiterating his buy recommendation and his $4,000 price target -- roughly 25% above where it currently trades.

In his analysis, Sheridan addressed one major concern some investors and pundits have expressed recently about the company -- what its comparable sales results will look like in the near future.

Amazon Prime Air plane in flight.

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After all, Amazon's business has surged in 2020, with impressive growth rates for a company this mature. In its most recently reported quarter, the e-commerce king delivered a 37% year-over-year improvement in revenue, well above even the most bullish analysts' projections. Meanwhile, its operating income nearly doubled, and its net income went up three-fold.

Acknowledging the challenge this year's excellent results posed in terms of the company's 2021 comps, Sheridan wrote: "While we continue to believe that Amazon is best positioned to benefit from high eCommerce adoption rate and the shift in consumer shopping behavior, we do expect to see a return to more normalized growth levels in '21 and beyond while pointing to potential [operating income] margin upside as the company is lapping significant COVID-19 related investments."

The UBS analyst made some strong points to support the bull case for Amazon. We should also bear in mind that the (hopefully) soon-to-be diminished threat from the coronavirus will spur growth in the broader economy. Since Amazon is the top name in e-commerce, it can reasonably be expected to be a major beneficiary from such an uptick. In that context, a $4,000 share price for the company looks entirely within the realm of possibility.

Amazon stock did not make the bulls happy on Thursday, though. It slipped by 0.5% on a day when the S&P 500 index closed lower by less than 0.1%.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.